Czech Republic
Franchise Organization
CZECH REPUBLIC Franchise Association
Ms. Hana JURASKOVA, Managing Director
Opletalova 6,
CZ - 110 00 Praha 1, Czech Republic
Tel: +420 242 444 509
Fax: +420 242 444 935
www.czech-franchise.cz
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Background
Following the First World War, the closely related Czechs and Slovaks of the former Austro-Hungarian Empire merged to form Czechoslovakia. During the interwar years, the new country's leaders were frequently preoccupied with meeting the demands of other ethnic minorities within the republic, most notably the Sudeten Germans and the Ruthenians (Ukrainians). After World War II, a truncated Czechoslovakia fell within the Soviet sphere of influence. In 1968, an invasion by Warsaw Pact troops ended the efforts of the country's leaders to liberalize Communist party rule and create "socialism with a human face." Anti-Soviet demonstrations the following year ushered in a period of harsh repression. With the collapse of Soviet authority in 1989, Czechoslovakia regained its freedom through a peaceful "Velvet Revolution." On 1 January 1993, the country underwent a "velvet divorce" into its two national components, the Czech Republic and Slovakia. The Czech Republic joined NATO in 1999 and the European Union in 2004.
Geography
Area: 78,864 sq. kilometers; about the size of Virginia.
Cities: Capital--Prague (pop. 1.21 million). Other cities--Brno (367,000), Ostrava (310,000), Plzen (163,000).
Terrain: Low mountains to the north and south, hills in the west.
Climate: Temperate.
People
Nationality: Noun and adjective--Czech(s).
Population (est.): 10.3 million.
Annual growth rate: 0.1%.
Ethnic groups: Czech (94% or 9.6 million); Slovak (193,000); Roma (200,000); Silesian (11,000); Polish (52,000); German (39,000); Ukrainian (22,000); and Vietnamese (40,000).
Religions: Roman Catholic, Protestant.
Language: Czech.
Education: Literacy--99.8%.
Health: Life expectancy--males 73.34 yrs., females 79.7 yrs.
Work force (5.17 million): Industry, construction, and commerce--40%; government and other services--56%; agriculture--4%.
Economy
Nominal GDP (2007): $176.5 billion.
Per capita income: $20,229.
Natural resources: Coal, coke, timber, lignite, uranium, magnesite.
Agriculture: Products--wheat, rye, oats, corn, barley, hops, potatoes, sugar beets, fruit, hogs, cattle, horses, poultry.
Industry: Types--motor vehicles, machinery and equipment, iron, steel, cement, sheet glass, armaments, chemicals, ceramics, wood, paper products, and footwear.
Trade (2007): Exports--$113 billion (est.): motor vehicles, machinery, iron, steel, chemicals, raw materials, consumer goods. Imports--$109.8 billion (est.). Trading partners--Germany (32%), Slovakia, Poland, France, Austria, Italy, the Netherlands, Russia, U.K., China, United States.
The Czech Republic is one of the most stable and prosperous of the post-Communist states of Central and Eastern Europe. Maintaining an open investment climate has been a key element of the Czech Republic's transition from a communist, centrally planned economy to a functioning market economy. As a member of the European Union, with an advantageous location in the center of Europe, a relatively low cost structure, and a well-qualified labor force, the Czech Republic is an attractive destination for foreign investment. Prior to its EU accession in 2004, the Czech government harmonized its laws and regulations with those of the European Union. The government plans to meet the criteria for joining the eurozone around 2012. The small, open, export-driven Czech economy grew by over 6% annually from 2005-2007 and the strong growth continued throughout the first three quarters of 2008. Despite the global financial crisis, the conservative Czech financial system has remained relatively healthy. The rate of Czech economic growth, however, began to fall in the fourth quarter of 2008, mainly due to a significant drop in demand for Czech exports in Western Europe. This trend is expected to continue, with many analysts predicting Czech economy to contract slightly in 2009.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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